All else being equal, a firm will choose to make or buy simply on the basis of whether it can obtain the resource cheaper by making it internally or by buying it from an external supplier.

Question

Quizplus · Accepted Answer

This decision is based on the "make or buy" analysis, where a firm evaluates the costs and benefits of producing a good or service internally versus procuring it from an external supplier. The choice is often influenced by cost considerations, aiming for the cheaper option.

All Else Being Equal, a Firm Will Choose to Make